Mr.

Maswanganyi  insured his car, valued at

R400 000, with Company X for R150 000 and Company Y for R250 000. Mr.

Maswanganyi is involved in an accident and damage to his car amounts to R25

000. His claim, however, is repudiated due to some technical reasons. Company

Y, however, decided to make an ex-gratia payment of R15 625 to Mr. Maswanganyi.

Based on the

aforementioned scenario, indicate the correct statement.